Alliance BioEnergy Plus, Inc. (ALLM) and Progressive Fuels, Ltd. (PFL) have signed an exclusive brokerage agreement for five years. This will automatically renew at the end of the initial term or any renewal term for successive one-year terms.
ALLM has a patented cellulose-to-sugar (CTS) conversion process for the production of fuel, chemicals, pharmaceuticals and agricultural and industrial products. PFL is an independent interdealer broker in the wholesale physical biofuel, agriculture, CCA, Renewable Identification Numbers (RIN) and lower carbon fuel standards (LCFS) markets.
The price of cellulosic fuels reached US$4.33/gal. in California, US, in June 2017, an increase of 15.7% since January 2016. The global cellulosic ethanol market is expected to reach US$18 billion by 2021, based on CAGR of 45%. ALLM can produce cellulosic ethanol for less than US$1/gal., which is equivalent to less than US$18/bbl of oil.
Daniel de Liege, President and CEO of Alliance BioEnergy, Inc., commencted: "PFL has the expertise, industry relationships and market logistics to help us to vastly expand the sales channel for our cellulosic fuels. The global market for more environmentally friendly biofuels is growing exponentially, and this agreement is another step in our effort to become an industry leader."
"We are proud to be named the exclusive broker for ALLM’s cellulosic fuel products," said Curtis Chandler, President of PFL. "ALLM’s CTS conversion process sets it apart in a marketplace which is in the midst of incredible growth – the company produces high-quality ethanol at a lower price point without sacrificing its environmental benefits."